Data Privacy and Cybersecurity Risks in M&A Deals: Pre-Planning, Due Diligence, and Risk Allocation Strategies

Description

Data security breaches are at an all-time high, and the data privacy legal landscape is changing rapidly with new and expanded data protection laws nationally and internationally. At the same time, data is often among the most valuable assets of a target company. For these reasons, data privacy and cybersecurity planning in M&A transactions is more crucial than ever.

Counsel for buyers should evaluate and prioritize data privacy and cybersecurity risks throughout the life cycle of a deal, beginning with the assessment of a potential target, through the contract drafting stage and when closing the deal.

Examining a target's data assets and identifying privacy and cybersecurity vulnerabilities are essential to identifying showstoppers, executing a deal, including implementing risk mitigation measures, and planning for successful data integration post-acquisition.

When negotiating and drafting the transaction documents, counsel for both parties should ensure that any data transfer or sharing in connection with the transaction is compliant with privacy laws and that the relevant reps and warranties provisions and related indemnities or other recourse are tailored to the target's data privacy and cybersecurity risks.

Listen as our authoritative panel examines critical considerations for managing and allocating data privacy and cybersecurity risks in M&A deals.